Starting your own construction business is a big challenge, not because of the sheer scope of the work that you’ll be doing, but whether it’s economical to buy or hire the equipment you’ll be using. Some of the necessary tools of the trade are surprisingly expensive, and it may not exactly fit into your budget, waylaying your plans even before you begin.
Although it may seem more costly than simply setting aside enough funding and buying the equipment outright, renting and hiring is actually the smarter and more economical approach for many reasons.
Used Doesn’t Mean Bad
One of the main reasons why many people would rather buy than rent is the quality of the equipment. Rental equipment is technically second-hand as you’re not the only one using it for construction purposes, but it may surprise you that when you rent, you’re technically paying for new equipment.
Most concrete breakers for hire, for example, are well maintained and you’ll be paying for less in the long run compared to an outright purchase. There’s also the cost of ownership versus the cost of renting. When you buy equipment yourself, you’ll also be paying for any maintenance and operating costs, as well as government licensing and insurance to actually operate your equipment.
In contrast, rental and hiring fees are an all-inclusive cost. It may not seem cheaper in the long run, but the cost itself is slightly lower than all the things you’ll be paying for when you purchase your own equipment.
Renting and Hiring: More Breathing Room for Your Business
Another reason why hiring or renting is more economical than buying equipment outright is that it gives you some level of financial breathing room for your business. Even when you’re just starting out, the workload may start piling up, which means that you’ll have to be available almost every time once the clients start calling.
Hiring or renting equipment gives you some financial breathing space, as you won’t be pressured to buy all the equipment you need for the project just to make ends meet.
You also prevent unintentionally losing out on an investment. Not every construction project, for example, requires a concrete breaker, so if you buy one and suddenly not all of your future contracts need it, then you’ve essentially bought deadweight equipment that you’ll still be paying off for years.
When you’re just starting out in the construction business, renting or hiring equipment is the smarter and more economical choice. You won’t just be giving yourself some financial breathing room; you’ll also be giving yourself room to expand as a business.